New Credit File Reporting - What will it mean?

[marks]

Hi All,

With the changes in the credit file reporting, what will this mean for lending?
Access to credit? What will good look like? What will bad look like?

We obviously wanted to have less "touches" on our credit file to maximise our lending but does this no become a secondary consideration on new system?

When should we start seeing the results in the market?
What adaptations should we see from the lenders?

Cheers.

 

[D.T.]

It'll mean you won't be able to lie on your applications anymore

 

[oc1]

It'll mean you won't be able to lie on your applications anymore

First lo docs disappear, and now this? How are you gonna borrow now DT?

 

[Marty McDonald]

It will be a major shake up especially for the type of person who considers it virtually a right to borrow but doesn't pay bills on time

 

[Marty McDonald]

I also predict today tonight and aca will have a frenzy of hard luck declined loan stories.

On a serious note though why fix it if it another broke? Some of the Lowest default rates in the world.

 

[Colin Rice]

New laws to be implemented in March 2014.

If you are 5 days late on a bill payment this can be recorded on your credit file.

As to the extent lenders will use this information is unknown. If a deal is borderline and in the past may have been approved and the same deal post March 2014 has a few late payments then it may not be approved. Who knows?

Time to get organised with bill payments would be your best safeguard.

http://au.news.yahoo.com/today-tonight/latest/article/-/17053127/new-credit-reporting-laws/

 

[Ausprop]

to maintain current loan volumes banks will have to lower lending standards. alternatively lending will drop and there will be less credit chasing real estate = lower prices

 

[Ausprop]

On a serious note though why fix it if it another broke? Some of the Lowest default rates in the world.

the companies that collect this information and then sell it back to us couldn't care less about default rates - for them the more complex and expensive the better